Why Might a Manager for a Non-Profit Organization Seem as Concerned

question 53

Multiple Choice

Why might a manager for a non-profit organization seem as concerned with his or her organization's financial well-being as a for-profit manager?

• A) Non-profit managers are evaluated on financial performance only.
• B) Non-profit managers try to give the illusion that they care about the "bottom line."
• C) Many not-for-profit organizations have tight budgets and must be very efficient.
• D) Non-profit organizations have an obligation to turn a profit.

---

Definitions:

Investment Opportunity

A situation in which an individual or organization has the possibility to invest in something that has the potential to yield financial returns.

Margin

The difference between the selling price of a good or service and its cost, often expressed as a percentage of the selling price.

Return On Investment

A performance measure used to evaluate the efficiency of an investment by comparing its return to its cost.

Residual Income

The amount of income that an individual or company has after all required expenses and costs have been paid.